BofA to repay TARP loans

December 3, 2009 at 5:32 pm

Bank of America has received Fed approval to repay the $45 billion in Troubled Asset Relief Program bailout loans it got from taxpayers over the past year. Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance in the School of Management, says the payback might be too early.

“Banks are beginning to earn their way back to health, and BofA is on much stronger financial footing than even six months ago. But banks still need to rebuild capital positions that were destroyed over a long period of wonton risk taking.”